Electricity and Control April 2024

ENERGY MANAGEMENT + THE INDUSTRIAL ENVIRONMENT : PRODUCTS + SERVICES

520 MW wind and solar – another step towards reducing emissions

Anglo American has announced that its jointly owned re newable energy venture with EDF Renewables, Envusa Energy, has completed the project financing for its first three wind and solar projects in South Africa. The terms and structure of the non-recourse project financing are typical of high-quality renewable energy infrastructure assets. The three renewable energy projects, known as the Koruson 2 cluster of projects and located on the border of the Northern and Eastern Cape provinces, will have a total generation capacity of 520 MW from wind and solar energy. Themba Mkhwanazi, Anglo American’s Regional Director for Africa and Australia, said: “The successful project financing of these initial projects marks our first major step towards addressing Anglo American’s largest remaining source of Scope 2 emissions – our electricity supply in southern Africa. As we progress towards our 2040 carbon-neutral operations commitment, we also see the opportunity to enhance energy reliability and grid resilience in South Africa. We expect that energy availa bility to help catalyse extensive socioeconomic activity, playing an important role in unlocking South Africa’s eco nomic development and growth prospects.” The projects – the Umsobomvu Wind project (140 MW), the Hartebeesthoek Wind project (140 MW), and the Mooi Plaats Solar project (240 MW) – form part of Envusa Energy’s mature pipeline of wind and solar projects in South Africa. The renewable energy ecosystem that Envusa Energy plans to develop is expected to supply a mix of renewable energy, generated on Anglo American’s sites in the southern African region and on other sites from which renewable energy will be transmitted via the national grid. The Koruson 2 wind and solar projects benefit from high-yield resources and a robust Eskom grid connection. This configuration promises considerable electricity cost savings compared to existing tariffs. Anglo American’s three businesses in South Africa (Anglo American Platinum, Kumba Iron Ore, and De Beers), have committed to 20-year offtake agreements with Envusa Energy. These agreements will see Anglo American Platinum receiving 461 MW of supply, Kolomela mine 11 MW, and Venetia mine 48 MW. All projects are due to reach commercial operation during 2026. This inaugural phase of contracts is expected to abate some 1.5 million tonnes per year of carbon dioxide. Nolitha Fakude, Chair of Anglo American’s Management Board in South Africa and Chair of Envusa Energy, said: “We are making progress in setting up Envusa Energy for long-term success as a major renewables powerhouse in South Africa. Achieving financial closure for these three renewable energy projects marks a crucial milestone in support of Anglo American’s global decarbonisation journey and bolsters South Africa’s pursuit of a resilient and clean energy future. “We believe the energy transition offers a unique

The Koruson 2 cluster will include the Umsobomvu Wind project, Hartebeesthoek Wind project, and the Mooi Plaats Solar project. chance to generate substantial new economic opportu nities as part of South Africa’s journey towards an inclu sive, sustainable, and low-carbon economy.” Tristan de Drouas, CEO at EDF Renewables in South Africa, said: “Collaborating with Anglo American to apply our global expertise in renewable energy infrastructure development, design, and delivery, has been immense ly rewarding. With Envusa Energy being developed as a jointly owned venture with Anglo American, we have consolidated our long-term commitment to South Africa’s transition to clean energy. “The financial close of this initial cluster of projects is the first step towards Envusa Energy’s ambition to roll out three to five gigawatts of wind, solar and storage projects by 2030. “These collective initiatives align with EDF Group’s CAP 2030 strategy, which is focused on doubling our net renewable installed energy capacity globally (including hydropower) from 28 GW in 2015 to 60 GW by 2030.” In line with both companies’ commitment to support ing a just energy transition, Envusa Energy is exploring a range of black economic empowerment (BEE) and com munity partnership models that will enable businesses and host communities to share in the benefits created by the development of the renewable energy ecosystem, along its value chain. The first of these empowerment initiatives includes the incorporation of a 20% equity in vestment by Pele Green Energy (Pty) Ltd (an established South African independent power producer) into each of the three project companies delivering the development of the Koruson 2 assets, alongside the establishment of a community trust to manage the financial interests of local communities in the Koruson 2 assets. Envusa Energy is also in the process of implementing the incorporation of a BEE partner at the business level. The development of the renewable energy ecosystem presents an opportunity to help build a more collaborative and inclusive economy that places people and the principle of shared prosperity at the heart of development. □

APRIL 2024 Electricity + Control

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